(a) In general. Each regulated entity:
(1) Shall complete an annual stress test of itself based on its data as of September 30 of that calendar year;
(2) The stress test shall be conducted in accordance with this section and the methodologies and practices described in Sec. 1238.4 and in any supplemental guidance or Order.
(b) Scenarios provided by FHFA. In conducting its annual stress tests under this section, each regulated entity must use scenarios provided by FHFA, which shall be generally consistent and comparable to those established by the FRB, that reflect a minimum of three sets of economic and financial conditions, including a baseline, adverse, and severely adverse scenario. Not later than 15 days after the FRB publishes its scenarios, FHFA will issue to all regulated entities a description of the baseline, adverse, and severely adverse scenarios that each regulated entity shall use to conduct its annual stress tests under this part.